Despite the growing movement towards responsible business, only one in four UK-based companies gives to charity. Should your organisation leave the majority’s side and start giving — or better yet, raising — money for a good cause? What is in it for you and your staff?
Well, charity fundraising is a chance to demonstrate social responsibility, which can translate to a better reputation, higher retention rates, and a more engaged workforce.
Let’s explore what a simple fundraising campaign can do for you and what downsides you need to watch out for.
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7 Perks of Charity Fundraising
You’d be surprised to learn that many SME team members are already willing to give up time and effort to a fundraiser. And they’ll do it without really caring about the business-related perks waiting at the end of the campaign.
But if anyone on the board is on the fence, then check out these seven benefits. Hopefully, they’ll help you change some minds.
1. It’s an Engagement Booster
One of the core drivers of employee engagement is purpose. People who do work that feels meaningful and belief-driven are more likely to be engaged.
Of course, employers need to focus on the big picture, making sure employees understand and share the company’s vision. That said, there are other ways to get people to feel an emotional connection to their work.
Satisfying employees’ need for social impact through fundraising initiatives can help as well.
2. Employers Can Use It to Empower Employees
In order to build an empowered team, you must trust your employees and let them unleash their potential.
The trick is to understand that empowerment is basically permission with parameters. Read more about the “right” way to empower others in this guide to a nourished workplace.
3. It’s a Talent Magnet
Reports from the Edelman Trust Barometer tell us that 7 in 10 people on the job market want a workplace with a social impact. They expect to work for an employer that reflects their values and gives them an opportunity to address important social problems.
Gen Z and millennials, in particular, care about an organisation’s community engagement and philanthropy. Deloitte’s reports estimate that around 75% consider whether a potential employer has a positive impact on society before applying for a job.
It’s worth noting that younger generations also happen to be the most charitable. Maybe this is because they’ve grown up in a world where fundraising campaigns are the norm. Perhaps it has more to do with life cycles and wealth.
Either way, they’ll likely appreciate a boss who sets up charity fundraising events that align with their values and beliefs.
4. It Can Do Wonders for Your Turnover Rates
People who work for an organisation that supports a good cause feel a sense of pride, which makes them less likely to leave. In fact, it’s estimated that philanthropy boosts loyalty to the company in 51% of the cases!
Basically, getting involved in charity fundraising can help you compete with bigger companies when it comes to attracting and retaining talent
5. You Can Get Team Bonding Opportunities Out of It
There’s nothing wrong with traditional team-building days, per se. You know, the ones with a whiteboard, get-to-know-you questions, and role play. Still, you have to admit that we could all use some fun every now and then.
We actually recommend a volunteer day as an engaging alternative. It has a little bit of everything — a sense of purpose, confidence boosters, and skill acquisition.
And yes, the same applies to fundraisers. If anything, they work better on larger scales.
6. It’s Good for Community Cohesion and Networking
While fundraisers can be the perfect chance for employees to bond, they can also open up networking opportunities for the whole organisation.
After all, you never know who you’ll meet at the event. You might find yourself engaging with potential local partners, new clients, or suppliers.
Fundraisers are just a nurturing environment for community cohesion. But, of course, your odds are better if you choose to raise funds for local charities.
Pro Tip: If you’re going to be involved in an offline fundraiser, make sure you prepare for the networking opportunity in advance. Do your pre-event research and dust off those business cards.
7. It’s Just Good PR All Around
The young generations aren’t just looking for charitable initiatives in their workplaces. They also expect the companies they buy from to demonstrate purpose beyond profit.
About 75% of the Gen Z consumer base is more likely to give money to a brand that allocates a portion of each sale to a charity. But even if you’re not targeting a specific demographic with your philanthropic efforts, organising a charity fundraiser is a good publicity move.
For one, it shows that you, as an organisation, aren’t one of those “heartless” businesses. To spend time and effort on fundraising, you have to have more on your mind than the bottom line, after all.
And if your brand has a playful, banter-rich presence on social media? Do yourself a favour and spread the word about your work with charities on your accounts. It’ll show that you have a serious side and are willing to work hard for a worthy cause.
Side Note: Although we kept it for last, the publicity aspect is the most obvious benefit to look forward to here. When you work with a charity, you’re doubling the exposure, audience, and interest.
Potential Negatives to Watch Out For
It’s clear as day that there’s a lot to gain from charity fundraising. But let’s be fair; nothing is all good. There’s a thing or two that could go wrong along the way.
It Could Be a Hassle
Whether you go for an online fundraising campaign or an offline event, there’s going to be a lot of admin and prep work.
If you’re doing offline events, don’t be scared to start small. A simple cake sale will do just fine, and you can scale up later if you decide to do it every year.
And to cut the hassle out of the equation, consider opting for a contactless fundraising option. You might even want to partner with charities using a donation platform like CAF Donate.
The platform will create an online fundraising page tailored to the charity’s brand and reduce the admin significantly for a small charge. CAF Donate will monitor transactions and do anti-money laundering checks to mitigate the risk as well.
Disagreements Could Pop Up Later
Just because you’re working with a charity doesn’t mean you can forget that this is a partnership. Treat it as you would any business partnership. Hash out all the details in advance, get everything in writing, and get a professional opinion on the contracts.
Some potential areas of conflict to worry about are:
- How and where can logos and brand names be used?
- Which party gets to handle the logistics?
- What is the copyright situation for the products involved in the fundraiser?
- How do you plan on transferring money from donors to the charity?
It’s also wise to do a bit of risk assessment before entering the partnership.
Just keep in mind that this risk assessment goes both ways. So, don’t be alarmed if the charity wants to check your organisation out before they work with you. They also have a name and a reputation to protect.
For instance, they might want to see if your organisation has a history of supporting charities and whether it’s financially sound.
The Golden Keys to a Fruitful Charity Fundraiser
Any form of corporate responsibility needs authenticity and transparency to be truly impactful, and your charity fundraiser is no exception. Even if it’s going to be a one-off event, it should still be based on a solid philanthropic pillar in your SME’s strategy.
It’s also wise to involve your employees in the selection process and raise funds for charities that align with their (and the company’s) values.
Then, make sure you have a clear definition of project success. What would a successful fundraiser look like to you? Does everyone involved (the charity, your employees, and the stakeholders) agree?
